My understanding is they've taken a position. It would be helpful to know what price? |
 Berenberg has hiked its target price for tonic maker Fever-Tree on the back of the tonic maker's partnership with Molson Coors, which it said appears "highly attractive".
Fever-Tree announced last week that it had entered into a strategic partnership with Molson Coors to drive the next stage of growth in the US.
The deal, which will see the American brewing giant take an 8.5% stake in the business, includes the exclusive sales, distribution and production of the Fever-Tree brand in the US - a market where it has been operating since 2008.
Berenberg labelled the tie-up between the two companies "a strong match", given Molson Coors' highly aligned distribution network.
"The partnership will allow Fever-Tree's products to tap into a vast distribution network within the US, supported by increased marketing resources, which is to yield growth acceleration and margin expansion for Fever-Tree," the broker said.
"In addition, we are positive about the amount of cash that the partnership will free up for Fever-Tree, which we think will translate to shareholder returns or alternatively, be invested in the company's growth."
Nevertheless, Berenberg still decided to keep a 'hold' rating on the stock, citing "operational uncertainty and continued subdued demand in Fever-Tree's other key markets".
Fever-Tree shares were up 1.1% at 739.3p by 1031 GMT, and now stand 10% higher over the year-to-date following a positive reaction to last week's deal.
red |
Can anyone decode what yesterday's TR-1 from Liontrust is saying?
====================================
Morgan short was reduced on 5/2/2025. |
BERENBERG RAISES FEVERTREE DRINKS PRICE TARGET TO 860 (700) PENCE - 'HOLD' |
Current flag has an unconfirmed target at approx 896 |
Shorts attempting to fill the breakaway gap from 30/1/2025
Measures 666.5-730 on the last market price based chart.
A breakaway gap often represents a news based event. They sometimes remain unfilled for long periods and denote a link between fundamentals and technicals. Market acceptance of the news is shown by the test |
Molson Coors Beverage Company 8.5% or 10,856,628 shares |
pleased there is one broker who thinks like me
tiger |
I guess more than 10 million shares issued at 654p coming to the market tomorrow may be holding things back a bit |
Make and sell the products in the USA, hence avoiding tariffs. It's a revenue share model what I've seen in the press release? |
What’s in it for Molson Coors other than having a stake in Fever-Tree? Do they share profits in USA, or do they make and sell the products and charge that back to Fever-Tree? |
Redburn cuts Fevertree Drinks to 'sell' - price target 593 pence |
PI's buy in for different reasons. My buy point was when I followed the Directors who bought in at 7.82 recently |
CT I appreciate your posts and insight.
My contrary view on this post is based on brand value. Marketing values a brand but this value is not shown on the balance sheet.
In the US FEVR are excelling at rollout of new mixers and liaisons with liquor manufacturers.
That is their basis for future growth, not manufacture and distribution.
apad |
i must be the only one who does not see this as a good deal.
Handing over the only part of the company that was growing ( the jewel in the company)
Its not for me at all.
Surprised brokers have missed this simple fact
good luck those that are in.
ps i do not short
tiger |
Jeffries have £90m EBITDA for 2028 which is pretty much pbt here. £869m EV after buybacks and net cash (inc deal receipt).
15 x plus the cash generation from FY25-FY28 = around £1.5b. 80% upside. Execution risk significantly reduced via the MC deal. No debt. This business could easily carry £200m, giving further optionality for shareholder returns. It's also a trophy brand and likely to remain so, with no other close competitor in its segments. All in all I like it a lot as a 25-30% near term re-rate or a mid term one bagger. |
Buy backs start today also. Free float going to be tiny . Tenner on the cards |
Ninety One Ltd take 5%Formerly Investec. |
That crossed my mind yesterday :-) |
Molson deal avoids any tariffs whatsoever. A real knockout deal they've done looking at this today |
https://news.sky.com/story/trump-latest-president-us-tariff-white-house-melania-sky-news-live-blog-13209921?postid=9048478#liveblog-body |
Wetdream Thanks for posting an updated list. I'll update shareholders in header once the dust has settled from last week. If anyone has access to more detailed or up to date info please post it here. |
First time I have held for 3.5 years.
I am a trader. |
I know its popped but with shorters and an enormous buyback. This should be a nice ride for 2 to 3 months minimum |
Bought a few. |
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